Here's The TRUTH About What Makes Gold Prices Move

[MNeagle]

Here's The TRUTH About What Makes Gold Prices Move


With gold sitting very close to all-time nominal highs, we thought you might like the following charts from Nomura on what drives gold's movement.

Their report is titled: "What drives gold?"

Among the factors: Real interest rates, central bank balance sheets, Indian wedding season, and the Aussie dollar.

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rest of story: http://www.businessinsider.com/what-makes-gold-move-2010-7?op=1

[ShawkNixon]

Negative rates is a big one. And of course the other reasons are valid.

In general though as the this debt bomb goes off, there will be a lack of trust in government and a lot of capital eventually will flea public debt. I also believe Chinese demand will play a big part this decade. They couldn't even buy gold a few years ago and now their government wants to add 7000 tons to their reserves and they are pushing their people to buy gold. Their biggest bank makes gold available at their major branches. Recently they opened up that Shanghai Gold Exchange and Pan Asia Gold exchange. A lot of potential customers that didn't really exist even 5 years ago.